Economics Part 2

Industries in India

State-wise Distribution of Industries

  • Different industries are not spread evenly across India. Some states have more industries than others.

Major Large-scale Industries

  • Large-scale industries include iron and steel, engineering, jute, cotton, textiles, and sugar.

Iron and Steel Industry

  • The first steel company in India was the Bengal Iron and Steel Company, which was established in 1870.
  • The private sector set up the Indian Iron and Steel Company in 1976.
  • The Vishakhapatnam steel plant in Andhra Pradesh was set up under the Sixth Five Year Plan with the help of the Russian Government.
  • The Salem steel plant in Tamil Nadu was also set up under the Sixth Five Year Plan.
  • The Bhadrawati steel plant in Karnataka was nationalized under the Sixth Five Year Plan. - The Tata Iron and Steel Company (TISCO) was the first large-scale steel plant in India. It was set up in Jamshedpur in 1907.
  • The Indian Iron and Steel Company (IISCO) was set up in Burnpur, West Bengal in 1919.
  • The Bengal Iron Company merged with IISCO in 1936.
  • The public sector steel plants in India are managed by the Steel Authority of India Limited (SAIL).
  • The government of India owns most of SAIL’s shares and controls the company.
  • SAIL has four integrated steel plants in Bhilai, Durgapur, Rourkela, and Bokaro.
  • SAIL also has three special steel plants in West Bengal, Tamil Nadu, and Karnataka.

Steel Industry in India

  • SAIL has three subsidiaries:

    • Indian Iron and Steel Company (IISCO) in West Bengal
    • Maharashtra Elektrosmelt Limited (MEL) in Maharashtra
    • Bhilai Oxygen Limited (BOL) in New Delhi
  • The first large-scale steel plant in the private sector is the Tata Iron and Steel Company (TISCO) in Jamshedpur.

  • Other major steel producers in India include:

    • Essar Steel
    • NMDC
    • Jindal Vijaynagar Steels Ltd.
    • Jindal Strips Ltd.
    • JISCO
    • Lloyds Steel Industries Ltd.
    • Uttam Steels
    • Ispat Industries Ltd.
    • Mukand Steels Ltd.
    • Mahindra Ugine Steel Company Ltd.
    • Tata SSL Ltd.
    • Usha Ispat Ltd.
    • Saw Pipes Ltd.
    • Kalyani Steels Ltd.
    • Electro Steel Castings Ltd.
    • NMDC
    • Sesa Goa Ltd.

Engineering Industries in India

  • Engineering industries in India produce machinery, tools, transport equipment, and consumer durables.

  • The automobile sector in India has shown the strengths of Indian labor and capital.

  • Several Indian firms have successfully integrated into global production chains and achieved rapid growth.

Jute Industry

  • Most of India’s jute mills are located in West Bengal.
  • The jute industry is important because it brings in foreign money.

Textile Industry

  • The textile industry is the oldest and largest employer in India.
  • With the end of the quota system under the Multi-Fiber Agreement (MFA) on January 1, 2005, developing countries like India, which have both textile and clothing production, may be able to grow.

Pharma and IT Industry

  • These are two of India’s fastest-growing industries.
  • The pharmaceutical industry has changed the most in India, while the information technology (IT) industry has made India a well-known brand in the world.
  • India has become the best place for business process outsourcing (BPO), which is a big part of the growth of the software and services industries.

Various Organizations Connected with Industries

  • Bureau of Indian Standards

Bureau of Indian Standards (BIS):

  • BIS is a government organization that was created in 1947.
  • Its job is to make sure that products made in India meet certain quality standards.
  • BIS gives a special mark, called the ISI mark, to products that meet its standards.

National Productivity Council (NPC):

  • NPC is an independent organization that was formed in 1958.
  • Its goal is to help industries become more productive.
  • NPC has offices all over India, and it works with businesses to use modern methods and techniques to increase production.
  • NPC also gives out awards every year to the most productive industries in different sectors.

Principal Manufacturing Regions:

  • The table shows the main manufacturing regions in India and the industries that are important in each region.
  • For example, the Jharkhand-Bengal Industrial Belt is known for its jute, cotton, electrical, and light engineering goods, as well as chemicals.
  • The Mumbai-Pune region is known for its petrochemicals, pharmaceuticals, and automobiles.

Table 4.4: Important Resources

Industry Location Products
Chemicals, engineering goods Indore-Ujjain Cotton cloth for local markets, handicrafts
Small textiles, iron foundries, railway and general engineering goods, glass and pottery works Nagpur-Wardha
Cotton textiles for local and other markets, railway and general engineering goods Dharwar-Belgaum
Local tobacco, sugarcane, rice and oil, cement, small textiles Godavari-Krishna delta
Textile and clothing, large modern tanneries, leather works, shoe manufacturing Kanpur
Textiles, light engineering, consumer goods of wide varieties Chennai
Cashew processing, coconut and oilseeds processing, associated industries (coir manufacturing, soaps) some textiles, numerous handicrafts Malabar-Kollam Trissur
Important textiles based on cotton grown in local regular soils, engineering centres Sholapur

Location of Industries in India

  • Aircraft industry: Bangalore and Kanpur
  • Aluminum: Alwaye (Kerala), Asansol (West Bengal), Belur (Karnataka), Hirakud (Orissa), Renukoot (UP), Muri (Jharkhand), Korba (Chhattisgarh)
  • Automobiles: Mumbai, Burnpur (West Bengal), Calcutta, Jamshedpur (Jharkhand), Chennai
  • Cables: Rupnarainpur (West Bengal), Rajpura (Punjab)
  • Cement: Bhadravati (Karnataka), Churk (UP), Dalmianagar (Bihar), Gwalior
  • Cotton textiles: Ahmedabad (Gujarat), Bangalore, Mumbai, Kolkata, Coimbatore (Tamil Nadu), Indore (MP), Kanpur (UP), Ludhiana and Amritsar (Punjab), Chennai, Madurai (Tamil Nadu), Nagpur and Sholapur (Maharashtra)
  • Cycles: Ludhiana (Punjab)
  • D.D.T.: Alwaye (Kerala) and Delhi
  • Glass Items:
  • Bangles: Firozabad (UP) and Belgaum (Karnataka) Here’s the simplified version of the content:
  • Lampware: Made in Kolkata and Naini (Uttar Pradesh).
  • Thermos flasks: Made in Faridabad (Haryana).
  • Glass bottles: Made in Amritsar (Punjab).
  • Glass lenses: Made in Jabalpur (Madhya Pradesh).
  • Glass sheets: Made in Bahjoi, Balawali, Ghaziabad, Jaunpur (Madhya Pradesh), Bangalore, Mumbai, Kolkata, Hyderabad, and Chennai.
  • Fertilizer: Made in Nangal, Sindri (Jharkhand), Gorakhpur (Uttar Pradesh), Nahorkatiya (Assam), Neyveli (Tamil Nadu), Rourkela (Orissa), and Trombay (Maharashtra).
  • Hosiery goods: Made in Amritsar, Ludhiana (Punjab), and Kanpur (Uttar Pradesh).
  • Jute goods: Made in Kolkata, Gorakhpur, and Kanpur.
  • Lac: Made in Jhalda and Kossipore (West Bengal), Mirzapur and Bareilly (Uttar Pradesh).
  • Leather goods: Made in Kanpur and Agra (Uttar Pradesh), Batanagar (West Bengal), Mumbai, Kolkata, Chennai, and Delhi.
  • Locomotives: Made in Chittaranjan (West Bengal), Varanasi (Uttar Pradesh), and Jamshedpur (Jharkhand).
  • Match boxes: Made in Ahmedabad, Bareilly (Uttar Pradesh), Mumbai, Kolkata, Chennai, Pune, Raipur (Chhattisgarh), and Srinagar.
  • Paper: Made in Bhadravati (Karnataka), Dalmianagar, Jagadhari (Haryana), and Lucknow.
Industry Location
Penicillin Pimpri (Maharashtra)
Rail coaches Perambur (Tamil Nadu), Pune (Maharashtra) Kapurthala (Punjab)
Resin industry Bareilly (UP), Nahan (Himachal Pradesh)
Rubber goods Ambapur (Tamil Nadu), Mumbai (Maharashtra), Thiruvananthapuram
(Kerala), Bareilly (UP)
Salt Kuchchh (Gujarat), Sambhar lake (Rajasthan)
Sewing machines Kolkata, Delhi, Ludhiana (Punjab)
Shipbuilding Visakhapatnam (Andhra Pradesh), Kochi, Mumbai, Kolkata
Silk Bangalore, Bhagalpur (Bihar), Srinagar
Sugar Gorakhpur, Sitapur, Rampur, Moradabad, Bijor, Saharanpur, Meerut,
Muzaffarnagar (UP), Gaya (Bihar), Zira, Jagraon (Punjab)
Sports material Agra (UP)

Chemical and Pharmaceuticals

  • Hindustan Organic Chemicals Ltd.: Rasayani, Maharashtra
  • Indian Drugs and Pharmaceuticals Ltd.:
  • Antibiotics Plant (IDPL): Rishikesh, Uttarakhand
  • Synthetic Drugs Project: Hyderabad, Andhra Pradesh
  • Surgical Instruments Plant: Chennai, Tamil Nadu
  • Hindustan Antibiotics Ltd.: Pimpri, Maharashtra
  • Hindustan Insecticides Ltd.: Alwaye, Kerala and Delhi

Fertilizers

  • Fertilizer Corporation of India Ltd.:
  • Nangal, Punjab
  • Sindri, Jharkhand
  • Trombay, Maharashtra

Nuclear Power Plants

Name Location
Gorakhpur Uttar Pradesh
Namrup Assam
Durgapur West Bengal
Neyveli Tamil Nadu

Heavy Water Plants

Name Location
Nahorkatiya Assam
Rourkela Orissa
Trombay Maharashtra

Machinery and Equipment

Name Location
Bharat Dynamics Ltd. Hyderabad
Bharat Electronics Ltd. Jalahalli (Karnataka)
Ghaziabad (Uttar Pradesh)
Bharat Heavy Electricals Ltd. Ranipur (Uttar Pradesh)
Ramachandrapuram (Andhra Pradesh)
Tiruchirapalli (Tamil Nadu)
Bhopal (Madhya Pradesh)
Bharat Heavy Plate and Vessels Ltd. Visakhapatnam (Andhra Pradesh)
Central Machine Tools Bangalore
Chittaranjan Locomotive Works Chittaranjan (West Bengal)
Cochin Shipyard Kochi
Diesel Locomotive Works Marwadeeh, Varanasi (Uttar Pradesh)
Garden Reach Workshop Ltd. Kolkata
Heavy Electricals Ltd. Bangalore
Heavy Electricals (India) Ltd. Bhopal
Heavy Engineering Corpn. Ltd. Ranchi
Heavy Machine Building Plant Ranchi

Here is the content rewritten in simpler language:

  1. Heavy Vehicles Factory: Located in Avadi, Tamil Nadu.

  2. Hindustan Cables Factory: Situated in Rupnarainpur, West Bengal.

  3. Hindustan Machine Tools: Has multiple locations, including Jalahalli (Karnataka) near Bangalore, Pinjore (Haryana), Hyderabad (Andhra Pradesh), Kalamassery (Kerala).

  4. Hindustan Shipyard: Found in Visakhapatnam and Kochi.

  5. Indian Telephone Industries: Has factories in Bangalore, Naini (Uttar Pradesh), Rai Bareilly (Uttar Pradesh), and Mankapur (Gonda, Uttar Pradesh).

  6. Instrumentation Ltd.: Located in Kota (Rajasthan) and Palakkad (Kerala).

  7. Integral Coach Factory: Has facilities in Perambur (Tamil Nadu) and Kotkapur (Punjab).

  8. Machine Tool Corporation of India: Situated in Ajmer, Rajasthan.

  9. Machine Tools Prototype Factory: Located in Ambarnath, Mumbai.

  10. Mazagon Docks Ltd.: Found in Mumbai.

  11. Mining and Allied Machinery Corporation Ltd.: Situated in Durgapur.

  12. Nahan Foundry: Located in Sirmur, Himachal Pradesh.

  13. National Instruments Factory: Situated in Kolkata.

  14. Praga Tools Corporation: Located in Hyderabad.

  15. Triveni Structural Ltd.: Situated in Naini, Himachal Pradesh.

  16. Tungabhadra Steel Products Ltd.: Located in Tungabhadra, Karnataka.

Projects:

  1. National Mineral Development Corporation is in Hyderabad.
  2. Hindustan Zinc Limited is in Udaipur, Rajasthan.
  3. Bharat Aluminium Co. Ltd. is in Korba, Madhya Pradesh and Ratnagiri, Maharashtra.
  4. Hindustan Copper Ltd. is in Agnigudala, Andhra Pradesh, Dariba, Rajasthan, Malanjkhand, Madhya Pradesh, and Rakha, Jharkhand.
  5. Bharat Coking Coal Ltd. is in Dhanbad, Jharkhand.
  6. Bharat Gold Mines Ltd. is in Kolar, Karnataka.
  7. Coal Mines Authority Ltd. is in Kolkata.
  8. Neyveli Lignite Corporation is in Neyveli, Tamil Nadu.
  9. Zinc Smelter is in Zawar, Rajasthan.

Paper:

  1. National Newsprint and Paper Mills Ltd. is in Nepanagar, Madhya Pradesh.

Petroleum:

  • Indian Refineries Ltd. is in Barauni, Bihar and Noonmati, Assam.
  • Cochin Oil Refinery is in Kochi, Kerala.
  • Koyali Oil Refinery is in Koyali, Gujarat.

Steel Plants:

  1. Hindustan Steel Ltd. is in Bhilai, Madhya Pradesh.
  2. Hindustan Steel Ltd. is in Durgapur, West Bengal. Steel Plants in India
Name Location
Bhilai Steel Plant Bhilai (Chhattisgarh)
Durgapur Steel Plant Durgapur (West Bengal)
Rourkela Steel Plant Rourkela (Odisha)
Bokaro Steel Plant Bokaro (Jharkhand)

Other Industries in India

Name Location
India Explosives Factory Gomia in Hazaribagh (Jharkhand)
Hindustan Photo Films Manufacturing Co. Ltd. Ootacamund (Tamil Nadu)

Cottage Industries in India

Name of Industry States and Cities
Handloom Industry
Sarees and dhotis Tamil Nadu, Madhya Pradesh, West Bengal, Varanasi, Karnataka
Prints Murshidabad, Farrukhabad, Jaipur, Mumbai, Karnataka
Carpets, rugs Mirzapur, Bhadohi, Ellora, Kashmir, Jaipur, Bangalore
Silk
Silk sarees Bangalore, Kanjivaram, Karnataka
Tussar silk Sambalpur, Ahmedabad
Patola silk Baroda

Metal and Brassware Industry in India

Name of Industry States and Cities
Brass Moradabad, Jaipur, Varanasi, Mumbai
  • Moradabad is famous for its utensils with engraving.

Brassware/Metalware:

  • Jaipur, Kashmir, Varanasi, Madurai, and Tanjore are known for their brassware and metalware.

Ivory Works:

  • Andhra Pradesh, Kerala, Karnataka, Tamil Nadu, and Rajasthan are famous for their ivory works.

Petroleum and Natural Gases:

  • In 1867, the first oil well was dug in India.
  • In 1889, the first successful oil well was dug in Digboi. This oilfield is still working after more than 100 years.
  • Until India’s independence, Assam was the only state in India that produced oil.
  • Recently, the Hindustan Oil Exploration Company found oil in the Cambay basin near Palej, Gujarat.
  • The seabed oilfields of Mumbai High, which were found recently, are also producing a lot of oil and are now the richest oil fields in India.
  • The government is exploring the natural resources of oil and natural gas in the country.

Organization Set-Up: The Department of Petroleum, which is part of the Ministry of Petroleum, Chemicals, and Fertilizers, is responsible for finding and getting oil and natural gas out of the ground. They also run refineries and distribute these products.

Oil India Limited (OIL): OIL is a company owned by the Indian government. It was started in 1959 in Duliajan, Assam, in partnership with the Burmah Oil Company (BOC).

Government Takeover: In 1981, the Indian government bought all of the shares that belonged to the Burmah Oil Company. This made OIL a completely government-owned company.

Objectives of OIL: OIL’s main goals are to find and get crude oil (which includes natural gas) and to build pipelines to transport the crude oil to government-owned refineries in Noonmati and Barauni.

Important Oil-Bearing States/Areas: Oil can be found in many places in India, including Assam, Tripura, Manipur, West Bengal, the Ganga Valley, Himachal Pradesh, Kuchchh, Andhra Pradesh, and the offshore areas near West Bengal, Orissa, and Andhra Pradesh.

States with Oil Reserves:

  • Pradesh, Tamil Nadu, Karnataka, Maharashtra, and Gujarat have oil reserves.

Main Oil Fields:

  • Oil-bearing wells have been drilled in the following areas:
    • Gujarat: Khambhat, Ankleshwar, Olpad, Sam, Kalori, and Weinad
    • Assam: Digboi, Rudrasagar, Sibsagar
    • Punjab: Adampur, Janauri, Jwalamukhi

Off-Shore Drilling:

  • Bombay High, located in the deep waters of the western coast, is an offshore drilling site. Drilling operations are carried out using the drilling platform, Sagar Samrat.

Corporations:

  • Indian Oil Corporation (IOC):

    • Established in 1964 by merging Indian Refinery Limited and Indian Oil Company.
    • Has three divisions:
      • Marketing (headquarters in Mumbai)
      • Refining and Pipeline (headquarters in Delhi)
      • Assam Oil (headquarters in Digboi)
  • Bharat Petroleum Corporation Ltd. (BPCL):

    • Formed in 1976 through the acquisition of Burmah Shell as Bharat Refineries Limited.
    • Name changed to Bharat Petroleum Corporation Ltd. on 1 August 1977.
    • An integrated refining, marketing, and distribution company.

    Hindustan Petroleum Corporation Ltd. (HPCL):

  • HPCL is a company that works with oil and gas.

  • It was started in 1974 by combining two other companies called ESSO and Caltex.

  • The government now fully owns HPCL since October 1976.

  • HPCL’s main activities include refining crude oil, making petroleum and lubricating products, and selling and distributing these products all over India.

  • HPCL is a very important public sector undertaking and has been given the ‘Nav Ratna’ status by the Indian government.

Gas Authority of India Limited (GAIL):

  • GAIL is the biggest company in India that sells natural gas.
  • It was started in 1984 by the government to take care of transporting, processing, distributing, and selling natural gas.
  • GAIL completed a difficult task given by the government to build the HBJ (Hazira, Bijapur, and Jagdishpur) Pipeline across the country in a very short time.
  • GAIL now has more than 4000 kilometers of gas pipelines that go all over India.

Refineries

Company Name Refinery Location (Capacity in Million Metric Tonnes Per Annum (MMTPA))
Indian Oil Corporation Ltd. Digboi (0.65), Guwahati (1.00), Barauni (6.00), Mathura (8.00), Koyali (13.70), Haldia (6.00), Panipat (12.00), Bongaigaon (2.35)
Subsidiaries CPCL-Chennai (9.50), Narimanam (1.00)
Hindustan Petroleum Corporation Ltd. Mumbai (6.50), Visakhapatnam (7.50)
Bharat Petroleum Corporation Ltd. Mumbai (12.00), Kochi (7.50), Numaligarh (3.00)

Upcoming Projects

  • Indian Oil Corporation Ltd. is planning to set up a new project at Mumbai refinery FCCU, which is expected to be completed by the first quarter of 2010-2011.
  • Hindustan Petroleum Corporation Ltd. is working on the Mittal Energy Investment Guru Gobind Refinery in Bathinda, which has a capacity of 9.00 MMTPA. This project is expected to be completed by the end of 2011.
  • Bharat Petroleum Corporation Ltd. is planning to set up the Bina Refinery in Bina, District Sagar, Madhya Pradesh, with a capacity of 6.00 MMTPA.

Note: MMTPA equals 20,000 barrels per day.

List of Oil Refineries in India

Company Name Refinery Location (Capacity in Million Metric Tonnes Per Annum)
Chennai Petroleum Corporation Ltd. Refineries Manali (9.50); Nagapattnam (1.00)
Assam Oil Company Ltd. Digboi (0.65)
Mangalore Refinery and Petrochemicals Ltd. Mangalore (9.69)
Oil and Natural Gas Corporation Ltd. (ONGC) Refineries Andhra Pradesh (0.10)
ONGC Videsh Ltd. (OVL) with the following Direct Subsidiaries
- ONGC Nile Ganga—Syria (0.812)
- Venezuela (0.671)
- Sudan (2.443)
ONGC Amazon Alaknanda Ltd. (OAAL)_OOVL’s share (0.370 MMT)
Jarpeno Ltd. (0.076 MMT)
*Joint venture with Mittal Energy Ltd. (ONGC Mittal Energy Ltd.)
*Joint venture with MRPL

Note: Telangana is now a separate state from Andhra Pradesh. The information above includes both Telangana and Andhra Pradesh.

Cities and their famous industries:

City Industry
Agra Shoes and leather goods
Ahmedabad Cotton textiles
Aligarh Locks
Alwaye Rare earths factory
Ambernath Machines tools prototype factory
Ankleshwar Oil
Bangalore Cotton textiles, aircraft, telephone, toys, carpets, motors, and machine tools
Bareilly Resin industry and wood work
Bhilai Steel plant
Bokaro Steel plant
Mumbai Cotton textiles, films
Kolkata Jute, electric bulbs, and lamps
Chittaranjan Locomotive
Delhi Textile, DDT
Dhariwal Woollen goods
Digboi Oil
Durgapur Steel plant
Firozabad Glass and glass bangles
Gwalior Pottery and textiles
Jaipur Embroidery, pottery, brassware
Jamshedpur Iron and steel
Jharia Coal
Kanpur Leather goods/shoes
Katni Cement
Khetri Copper
Ludhiana Hosiery, sewing machines, cycles
Moradabad Brass utensils

Industries and their locations in India:

  • Ensils: Calico-printing
  • Mysore: Silk
  • Nangal: Fertilizers
  • Nepanagar: Newsprint
  • Neyveli: Lignite
  • Perambur: Rail coach factory
  • Pimpri (Pune): Penicillin factory
  • Pinjore: Machine tool
  • Raniganj: Coal mining
  • Rourkela: Steel and fertilizers
  • Rupnarainpur: Cables
  • Sindri: Fertilizers
  • Singhbhum: Copper
  • Surat: Textiles
  • Tiruchirapalli: Cigars
  • Titagarh: Paper
  • Trombay: Atomic power station
  • Vishakhapatnam: Ship building